Visa Acquirer Monitoring Program (VAMP) Changes: What Merchants Need to Know to Stay Compliant
Effective Date: Program enhancements go live on April 1, 2025 with a 3-month grace period
New VAMP Ratio:
Formula: (Reported Fraud (TC40) + Non-Fraud Disputes) ÷ Total Settled Transactions
Provides a unified metric for fraud and chargeback monitoring.
Dispute Conditions Included in VAMP Calculation: Codes 11, 12, and 13 are factored into the ratio.
Exclusions from VAMP Ratio Calculation:
Rapid Dispute Resolution (RDR)
Cardholder Dispute Resolution Network (CDRN)
Confirmed Compelling Evidence 3.0
Thresholds and Penalties:
Breaching the Excessive threshold will result in penalties.
Important Note: Enforcement decisions are influenced by the acquirer’s VAMP ratio as well, making it essential for merchants to maintain strong performance to avoid impacting their acquirer relationship.
Streamlined Compliance: What's Changing in VAMP
Imagine your payment system as a busy intersection—smooth traffic flow keeps customers happy, but a few missteps can lead to bottlenecks and collisions. Visa’s updated VAMP program acts like a smarter traffic control system, simplifying how fraud and chargebacks are monitored to ensure your transactions stay on the fast track. With the changes rolling out on April 1, 2025, merchants will have clearer guidelines to reduce risk and maintain compliance. Let’s dive into the updates and explore how they can help you keep your business running smoothly.
Key Changes to VAMP (2024):
Visa is taking significant steps to simplify how fraud and chargeback activity is monitored by merging two key programs—the Visa Fraud Monitoring Program (VFMP) and the Visa Dispute Monitoring Program (VDMP)—into the existing Visa Acquirer Monitoring Program (VAMP). This brings together the monitoring of fraud and disputes into a unified framework. It aims to provide merchants and acquirers with a clearer, more manageable system for tracking and addressing risks. Here’s what you need to know about these updates, effective April 1, 2025.
New VAMP Ratio Calculation
The cornerstone of the updated program is the VAMP ratio, calculated as:
(Number of Reported Fraud (TC40) + Non-Fraud Disputes) ÷ Total Number of Settled Transactions
This simplified calculation provides a holistic view of a merchant’s performance, making it easier to assess fraud and chargeback activity at a glance. Visa has introduced a critical threshold for merchants under the updated calculation:
Excessive Threshold: Merchants who exceed this threshold will face penalties, depending on the severity of their non-compliance. Enforcement actions are influenced by both the merchant's performance and their acquirer’s VAMP ratio, making it vital for merchants to proactively manage fraud and chargebacks to maintain compliance.
Here’s a crucial detail: enforcement decisions aren’t made in isolation. Visa will factor in both the merchant’s and the acquirer’s VAMP ratio when determining penalties. By staying below this threshold, merchants can avoid penalties and preserve a strong relationship with their acquirer. Penalties and actions for breaches will commence after July 1, 2025.
Exclusions and Key Conditions
Excluded from the VAMP Ratio Calculation:
Rapid Dispute Resolution (RDR): Preemptively resolves disputes before escalation.
Cardholder Dispute Resolution Network (CDRN): A network-based system for dispute notification.
Confirmed Compelling Evidence 3.0: Successfully counters disputes with validated evidence.
With these updates, Visa is focusing on greater transparency and precision, helping merchants and acquirers better manage risks while aligning with compliance standards. It’s time to adapt your systems and strategies to stay ahead of the curve.
What Merchants Need to Know
The updated VAMP program brings a sharper focus on managing fraud and chargebacks, making it essential for merchants to stay proactive and informed. The new VAMP ratio highlights the importance of this, as its simple formulations makes it obvious that all merchants must emphasize the minimizing of both fraud and chargebacks as a core operation of their business. By keeping these metrics under control, merchants can avoid breaching thresholds and therefore maintain compliance.
The VAMP ratio includes two critical components:
Fraud Disputes (TC40 reports)
Non-Fraud Disputes (tracked through Dispute Conditions 11, 12, and 13)
While it excludes certain elements:
RDR (Rapid Dispute Resolution)
CDRN (Cardholder Dispute Resolution Network)
Confirmed Compelling Evidence 3.0
This streamlined formula ensures a more transparent assessment of fraud and dispute activity, helping merchants focus on key areas of improvement.
Best Practices for Compliance
Invest in Fraud Prevention
Think of fraud detection tools as your security guard—they’re there to prevent unauthorized access and keep your operations running smoothly. Leveraging advanced tools to detect and mitigate fraud will not only reduce disputes but also protect your bottom line.Monitor Your VAMP Ratio
Staying ahead means knowing where you stand. Regularly tracking your VAMP ratio allows you to spot trends early and make necessary adjustments to stay compliant.Improve Risk Management
Take a closer look at your internal processes. Are your fraud detection systems up-to-date? Do you have a streamlined process for resolving disputes? Regularly refine these strategies to align with VAMP’s stricter criteria.Choose the Right Tools to Manage VAMP
The right tools make all the difference. Adopting robust fraud prevention and chargeback management solutions ensures you’re well-equipped to handle VAMP’s demands.
StreamPayments: Your Partner in Compliance
We understand that navigating VAMP’s complexities can feel overwhelming because of terminology, time, and/or low headcount in finance, billing and payments in your organization. At StreamPayments, we’re already developing automated, tailored solutions designed to help merchants simplify compliance, reduce fraud, and manage disputes with confidence.
With our expertise, we’ll provide the tools and guidance you need to stay ahead of these changes and keep your business running smoothly. By focusing on proactive risk management and leveraging the right resources, merchants can successfully adapt to VAMP’s updates while maintaining strong relationships with their acquirers. Stay prepared, and let StreamPayments help you lead the way.
Ready to Stay Ahead of VAMP?
At StreamPayments, we’re committed to simplifying compliance and empowering merchants to manage fraud and chargebacks effortlessly. We’re excited to announce that a tailored solution for VAMP compliance is on the way—stay tuned for more details!
In the meantime, don’t let these changes catch you off guard. Contact us today info@streampayments.com — to learn how we can help you navigate these updates and keep your business thriving. Let’s future-proof your payment systems together!
